Various Reader Comments

One reader asked for my thoughts on iShares Brazil (EWZ). Well, The Brazil Fund (BZF) has done much better and yields more than EWZ, but the dividend payment has been volatile. BZF trades at a 7% discount to NAV. I would tell anyone to study BZF before buying EWZ. Either one is probably valid but I have had better luck with individual stocks for Brazilian exposure.

Another reader asked about broad OEFs to capture Australia, New Zealand and timber. I have no idea about timber. I know Plum Creek from my days at Lehman Brothers in the late 1980s when it was still an MLP. I am quite comfortable with it and have not sought out any substitutes. I would be interested in a timber ETF, ala GLD, for its diversification value but I doubt that is a priority for any of the ETF companies.

As for broad OEFs, and the reader cited an actively managed fund or two as examples. If the manager likes Australia today but six months reduces Australia down to zero, you won't know about it in a timely manner and when you do find out you might need to make changes. So I'm not really on board with that idea but I concede there could be several funds that will always have some Aussie exposure. Given my lack of interest I have not researched this.

There is one OEF that I know of the invests in Australia and New Zealand , the Commonwealth Australia/New Zealand Fund (CNZLX). This fund has an excellent track record.

The same reader noted that there is some repetition in some of the questions I get and some of the commentary I provide. The suggestion was "greatest hits" section on the blog where these topics would be easily accessible.

This is a good idea. Here's the thing; I am always refining my process. That is one of the reasons for this site; to share my current process and share how it evolves. Additionally, it is important that readers that are trying to manage their own portfolios see me react with some consistency. For example, no matter what comes along, emotions play very little role in what I do. Markets work a certain way, that knowledge of history combined with understanding current events helps me figure out what I think needs to be done, or not done as the case may be.